1. Item 15: Stock and Flow accounts
ESTP course on National Accounts
ESA 2010
Luxembourg, 15 May May Eurostat

2. Stock and flow accounts
FLOWS (main bal. items: income, saving, B9):
Transactions in goods and services
Distributive transactions
Financial transactions
Other economic flows (price/volume changes)
STOCKS (main bal. item: net worth/wealth)
Stocks of financial assets / liabilities
Stocks of non financial assets
Non-Financial accounts
Financial accounts

3. A map of ESA 2010: flows Production Value added Income Expenditure
Saving
Changes in assets & liabilities
Non-financial assets
Financial assets

4. Set of Flow Accounts
Production Primary Distribution of income Secondary Distribution of Income Use of Income Capital Account Financial Account

5. Goods and services account
Resources
Uses
Output
Taxes on products less subsidies
Imports
Intermediate consumption
Final consumption
Gross fixed capital formation
Changes in inventories and valuables
Exports

6. I. Production account (e.g. for S11)
Uses
Resources
Output
Intermediate consumption
Gross Value Added

7. I. Production account (here for S1)
Uses
Resources
Output
Intermediate consumption
Taxes on products less subsidies
Gross Domestic Product
100%
12%
50%
62%

8. II.1 Primary Distribution of Income
Uses
Resources
Compensation of employees
Gross Value added
Taxes on production
less subsidies
Gross operating surplus
~2%
~50%
~15%
~35%
100%

9. II.1 Primary Distribution of Income (cont)
Uses
Resources
Gross Operating surplus
Property income (payable)
Property income (receivable)
Balance of primary income

10. II.2 Secondary Distribution of Income
Uses
Resources
National income / Balance of primary income
Current taxes on income, wealth, etc. (payable)
Current taxes on income, wealth, etc. (receivable)
Social contributions and benefits in cash (payable)
Social contributions and benefits in cash (receivable)
Other current transfers (payable)
Other current transfers (receivable)
Disposable income

11. II.4 Use of Income Account
Uses
Resources
Disposable income
Final consumption expenditure
Change in net equity of households in pension funds
Saving
100%
~75-80%
~20-25%
~1%

12. Changes in liabilities and net worth
III.1 Capital Account
Changes in assets
Changes in liabilities and net worth
Saving
Capital transfers (payable)
Capital transfers (receivable)
Gross capital formation
(-) Consumption of fixed capital
Acquisitions less disposals of non-produced non financial assets
Net lending (+)/Net borrowing (-)
~1%
~100%
-15/20%
100%
60-130% of GCF

13. Balance sheets
Include both non-financial and financial assets, and liabilities
Balance is net worth (usually not zero!)
Entries valued at market prices on the day of the Balance Sheet
In the ESA system can be annual or quarterly

14. Types of non-financial assets
Non-financial produced assets
Fixed assets (e.g. machines, software)
Inventories
Valuables
Non-financial non-produced assets
Natural (e.g. land, mineral deposits)
Contracts, leases and licences (e.g. permits)
Goodwill

15. Changes in balance sheets
Opening Balance Sheet
+/- Transactions
+/- Revaluations
+/- Other changes in volume
Closing Balance Sheet

16. Revaluations
“Nominal Holding Gains/Losses” (K.7) reflect changes in the level and structure of prices
Can be divided into “neutral” (general price change) and “real” (specific price change) holding gains/losses; few countries do this
Should ideally be measured independently, not as a residual, but not easy!

17. Other changes in volume - pt1
Economic appearance of assets (K.1) e.g. finding new mineral resources, a painting becomes valuable, fish breed in the open sea
Economic disappearance of non-produced assets (K.2) e.g. depletion of mineral resources
Catastrophic Losses (K.3) e.g. war destroys buildings, BSE destroys cows

18. Other changes in volume – pt 2
Uncompensated Seizure (K.4) e.g government nationalises an industry without compensation
Other volume changes not elsewhere covered (K.5) e.g. abandonment of production facilities before completion or being brought into economic use, change in pension scheme model estimates
Changes in classification and structures (K.6) e.g. a unit is reclassified to another sector